If you had a brokerage account with Robinhood, you'll most likely receive a Form 1099-B from the broker. From a tax perspective, the most important information included on your 1099-B is the amount you paid for your investment and your sales proceeds.
The first step in entering your 1099-B on your tax return is to transfer the appropriate information to Form 8949. Form 8949 is for the sales and dispositions of capital assets, such as stocks, bonds and mutual funds.
After using the information from your 1099-B to calculate your preliminary gains and losses on Form 8949, you'll transfer that information to Schedule D.
Any short-term gains from your 1099-B information will be included in your regular income on your tax return. Ultimately, you'll pay tax on it as if it were wages or other ordinary income. These federal tax rates, which were changed by recent tax laws, were set at between 10 percent and 37 percent. Long-term gains benefit from a lower tax rate, possibly as low as zero percent but not exceeding 20 percent.